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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2012
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

4. Stock-Based Compensation

In October 1999, the Company adopted a long-term equity incentive plan, which allows for grants of stock options, stock appreciation rights, restricted stock and performance awards to directors, officers and employees of PCA, as well as others who engage in services for PCA. The Company has not granted any option awards since 2007. Restricted stock awards granted to officers and employees generally vest at the end of a four-year period, and restricted stock awards granted to directors vest immediately. The plan, which will terminate on October 19, 2014, provides for the issuance of up to 8,550,000 shares of common stock over the life of the plan. As of March 31, 2012, options and restricted stock for 7,656,315 shares have been granted, net of forfeitures. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

Compensation expense for restricted stock recognized in the condensed consolidated statements of income for the three-month periods ended March 31, 2012 and 2011 was as follows:

 

     Three Months Ended
March 31,		  
     2012     2011  
(In thousands)             

Impact on income before income taxes

    $ (2,594 )    $ (1,750 ) 

Income tax benefit

      1,009        681   
  

 

 

    

 

 

  

Impact on net income

    $ (1,585 )    $ (1,069 ) 
  

 

 

    

 

 

  

The fair value of restricted stock is determined based on the closing price of the Company's common stock on the grant date.

A summary of the Company's stock option activity and related information follows:

 

    Options     Weighted-
Average
Exercise
Price		     Weighted-
Average
Remaining
Contractual
Term (years)		     Aggregate
Intrinsic
Value		  
                      (In thousands)  

Outstanding at December 31, 2011

     1,224,699      $ 21.64       

Exercised

     (488,961 )      20.90       
 

 

 

    

 

 

      

Outstanding and exercisable at March 31, 2012

     735,738      $ 22.14        1.7      $ 5,478   
 

 

 

    

 

 

    

 

 

    

 

 

  

The total intrinsic value of options exercised during the three months ended March 31, 2012 and 2011 was $4.1 million and $1.5 million, respectively. As of March 31, 2012, there is no unrecognized compensation cost related to stock option awards granted under the Company's equity incentive plan as all outstanding awards have vested.

A summary of the Company's restricted stock activity follows:

 

     2012     2011  
     Shares     Fair Market
Value at
Date of
Grant		     Shares     Fair Market
Value at
Date of
Grant		  
(Dollars in thousands)                         

Restricted stock at January 1

      1,817,745      $ 40,655        1,478,000      $ 30,600   

Granted

      —          —          200,000        5,796   

Vested

      (70,206 )      (2,007 )      (1,970 )      (41 ) 

Cancellations

      (2,940 )      (60 )      (1,150 )      (24 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Restricted stock at March 31

      1,744,599      $ 38,588        1,674,880      $ 36,331   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

The Company generally recognizes compensation expense associated with restricted stock awards ratably over their vesting periods. As PCA's Board of Directors has the ability to accelerate vesting of restricted stock upon an employee's retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age. As of March 31, 2012, there was $19.1 million of total unrecognized compensation costs related to the above restricted stock awards. The Company expects to recognize the cost of these stock awards over a weighted-average period of 2.4 years.